In a significant move to enhance the operational environment for micro, small, and medium-sized enterprises (MSMEs) in Nigeria, President Muhammadu Buhari, GCFR, officially signed the Business Facilitation (Miscellaneous Provisions) Act 2023 into law on 14 February 2023. This Act, commonly referred to as the Omnibus Act, was crafted under the purview of the Presidential Enabling Business Environment Council (PEBEC) and was presented to the National Assembly as an Executive Bill. Its primary aim is to streamline and remove bureaucratic obstacles that impede business operations within Nigeria.

Key Provisions of the Act

1. Service Level Agreements (SLAs): One of the prominent features of the Act is the requirement for Ministries, Departments, and Agencies (MDAs) to create Service Level Agreements (SLAs). These agreements will outline the services provided by the MDAs, document requirements, processing timelines, fees, application procedures, redress mechanisms, and other relevant details. This initiative aims to bring transparency and efficiency to the public sector’s interaction with businesses.
2. Transparency and Efficiency Requirements: MDAs are now mandated to publish a comprehensive list of requirements for obtaining their services within 21 days of the Act’s commencement. This list must be made available on their websites, helpdesks, and designated offices. Additionally, strict timelines for service provision have been established, and failure to adhere to these timelines may result in automatic approval of applications.
3. Automation of Corporate Administration Processes: The Act directs the Registrar-General of the Corporate Affairs Commission (CAC) to fully automate all application processes within 14 days of the Act’s implementation. This move aims to expedite business registration and related processes.
4. Amendments to Existing Acts: The Act includes amendments to various existing laws, such as the Companies and Allied Matters Act (CAMA), Industrial Training Fund (ITF) Act, Nigerian Investment Promotion Commission (NIPC) Act, National Housing Fund Act, Immigration Act, and Industrial Inspectorate Act. These amendments cover a wide range of areas, including corporate governance, taxation, employee contributions, foreign participation, and regulatory compliance.

Implications and Commentary

The introduction of the Omnibus Act is a commendable step towards improving Nigeria’s business environment. By addressing critical bottlenecks and promoting transparency and efficiency, the Act aligns with the government’s objective of enhancing the ease of doing business in the country. Furthermore, it complements other recent legislative efforts aimed at stimulating investment and economic growth, such as the Nigeria Start-up Act 2022.

However, the true impact of the Act will depend on its effective implementation and enforcement. It is crucial for MDAs to adhere to the provisions outlined in the Act, ensure accountability in service delivery, and foster a conducive environment for businesses to thrive. Additionally, ongoing monitoring and evaluation mechanisms should be put in place to assess the Act’s effectiveness and address any challenges that may arise.

In conclusion, while the Business Facilitation Bill 2023 presents promising opportunities for business growth and development in Nigeria, its success hinges on robust enforcement and collaboration between the public and private sectors. With the right implementation strategies in place, the Act has the potential to usher in a new era of efficiency and competitiveness in Nigeria’s business landscape.

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